Home NEWS Local News Affordable housing budgetary allocation almost double last year’s share

Affordable housing budgetary allocation almost double last year’s share

President William Ruto administration’s first budget since taking charge of the country’s affairs has underscored his commitment to the realization of the affordable housing agenda.

In the 2023/2024 budget statement, the overall allocation toward housing programmes buttressed the sector as one of his priority areas amid efforts to enable Kenyans to be homeowners.

Channel 1

In the Budget, the Treasury announced that the Government had allocated the sector Ksh 35.2 billion up from the Kshs. 27.7 billion that was set aside for the Housing Programme last year.

The allocation, according to Treasury CS Njuguna Ndugu is aimed at facilitating the delivery of 250,000 houses per annum and enabling affordable housing mortgages.

Out of the Ksh35.2 Billion, Ksh 3.2 billion is meant for the Construction of Affordable Housing Units. This is an increase of Ksh.1.5 billion from last year’s allocation to the sub-sector which had received Ksh.1.7 billion.

And that’s not all as the Construction of Social Housing Units received a boost of Ksh 3.3 billion budgetary allocation up from the Ksh.1.2 billion allocated last year by then Cabinet Secretary Ukur Yattani.

“The cost of housing is a heavy burden to the majority of Kenyans and is the main factor driving the 66 proliferations of slums in the country. The Government’s commitment is to turn the housing challenge into an economic opportunity to create quality jobs for over 100,000 young people graduating from TVETs every year directly in the construction sector and indirectly through the production of building products,” Ndungu said when he read the budget in parliament

Other allocations in the sector include Ksh 7.3 billion under the Kenya Urban Programme (KenUP); Ksh 5.0 billion to Kenya Mortgage Refinance Company for enhancement of the company’s capital as well as for lending to primary mortgage lenders; Ksh 3.2 billion for the Construction of Affordable Housing Units as well as Ksh 3.3 billion for Construction of Social Housing Units.

Ksh 5.5 billion will go toward the Kenya Informal Settlement Improvement Project-Phase II; Ksh 5.2 billion for the construction of markets; Ksh 932 million for the maintenance of Government Pool Houses.

At the same time, President Ruto’s government announced Ksh 1.1 billion for the construction of Housing Units for the National Police and Kenya Prison.

Another Ksh 637 million will be channelled towards the Kenya Municipal Programme; Ksh 150 million for the construction of footbridges and Ksh 300 million for the Development of Appropriate Building Technology.

Website | + posts